Reuters quoted a Chinese economist said China economy won't crash but a shrinking trade surplus will likely keep its currency, the yuan from appreciating over the next year or two.
Mr Huang Yiping economics professor at the China Center for Economic Research at Peking University said it would be hard to argue that the yuan was undervalued when the trade surplus was only 2% of China GDP.
He said that "In the long run I think the currency should still appreciate but the potential currency appreciation might be more limited in the short term."
Mr Huang said "Be careful what you look for from China. I suspect the currency will be going down for a little while."
The US has long pressured China to let the yuan appreciate against the dollar. Chinese officials have said they will let the currency strengthen gradually, so as not to disrupt the country economy.
The debt crisis in Europe and some recent brighter US economic data helped cause a strengthening in the dollar and a slight weakening in the yuan value at the end of 2011 and into early 2012.
The yuan posted its fourth straight day of losses on Monday as the Chinese central bank set a weaker mid-point in response to the strong rise in the dollar which neared a 16 month high against the euro on Friday.
Chinese economists do not strictly represent government policy and some even differ with official positions within limits. But on many issues, their comments reflect or amplify official opinions.
Mr Huang who is a deputy director of Peking University China Macroeconomic Research Center was one of seven Chinese economists appearing at the National Committee on United-States-China Relations annual economic outlook conference at the New York Stock Exchange.
He said that "Rebalancing is happening in China. You don't really want to keep your money in China."
The economists at recent conference addressed growing fears among some US investors that China economic growth could slow abruptly, that its housing market could crash or that its ballooning shadow-banking industry could cause a financial crisis.
(Sourced from Reuters)
